Company Number: 14500796

Analysis Date: 2025-07-29 12:43 UTC

1. Risk Rating: HIGH
   Justification: The company shows a negative net asset position (£-5,063) due to substantial long-term creditors (£23,000) outweighing total assets. This indicates insolvency on a balance sheet basis. Although current assets exceed current liabilities, the overall negative equity suggests solvency risk. The company is very young (incorporated late 2022) with limited financial history and minimal operational scale (one employee), increasing uncertainty regarding sustainable operations.

2. Key Concerns:

• Negative net assets primarily caused by long-term liabilities exceeding total assets, indicating potential solvency issues.
• Limited financial track record (less than two years) restricts ability to assess operational stability or cash flow trends.
• Single director and sole person with significant control, which may increase governance risk if oversight is limited.

3. Positive Indicators:

• Current assets (£24,185) exceed current liabilities falling due within one year (£6,248), suggesting short-term liquidity is currently adequate to meet immediate obligations.
• Up to date filing status with no overdue accounts or confirmation statements reflects compliance with statutory requirements.
• Micro-entity status means simpler regulatory requirements and potentially lower operating costs.

4. Due Diligence Notes:

• Investigate nature and terms of the £23,000 long-term creditors to understand repayment obligations and impact on cash flow.
• Review detailed cash flow statements or management accounts (if available) to assess operational cash generation and working capital trends.
• Confirm business plan viability and revenue projections given the company’s recent incorporation and limited scale.
• Assess director’s background and governance controls given concentrated ownership and management.
• Verify any contingent liabilities or off-balance-sheet risks not apparent in micro-entity accounts.